1.

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $315,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows:

Products	Unit Selling Price		Unit Variable Cost
Bats	$60		$50
Gloves	150		90

a. Compute the break-even sales (units) for both products combined. _________ units

b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?

Baseball bats	_________units
Baseball gloves	_________units

2.

Beck Inc. and Bryant Inc. have the following operating data:

	Beck Inc.		Bryant Inc.
Sales	$210,400		$672,000
Variable costs	84,400		403,200
Contribution margin	$126,000		$268,800
Fixed costs	84,000		156,800
Income from operations	$42,000		$112,000

a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.

Beck Inc.	_________
Bryant Inc.	_________

b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.

	Dollars	Percentage
Beck Inc.	$________		_________%
Bryant Inc.	$________		_________%